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    37. A regional commuter airline selected a random sample of

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    37. A regional commuter airline selected a random sample of 25 flights and found that the correlation between the number of passengers and the total weight, in pounds, of luggage stored in the luggage compartment is 0.94. Using the .05 significance level, can we conclude that there is a positive association between the two variables?

    40. A suburban hotel derives its gross income from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms occupied on a nightly basis and the revenue per day in the restaurant. Below is a sample of 25 days (Monday through Thursday) from last year showing the restaurant income and number of rooms occupied.

    see chart on the attachment( pg. 499)

    Use a statistical software package to answer the following questions.
    a. Does the breakfast revenue seem to increase as the number of occupied rooms increases? Draw a scatter diagram to support your conclusion.
    b. Determine the coefficient of correlation between the two variables. Interpret the value.
    c. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the .10 significance level.
    d. What percent of the variation in revenue in the restaurant is accounted for by the number of rooms occupied.

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    Solution Preview

    37. Yes. Normally for correlation larger than 0.8 and sample sixe <=25, you can say there's a positive association. Here since .94 is so close to 1, especially for a sample of size ...

    Solution Summary

    The solution provides detailed explanations and calculations for the two statistic problem.